Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />C. CONTRIBUTIONS <br /> <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be <br />modified by the state legislature. <br /> <br />1. GERF Contributions <br /> <br />Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2023 and the <br />City was required to contribute 7.5% for Coordinated Plan members. The City’s contributions to the GERF for the year <br />ended December 31, 2023 were $305,242. The City’s contributions were equal to the required contributions as set by <br />state statute. <br /> <br />2. PEPFF Contributions <br /> <br />Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2023 and <br />the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the PEPFF for <br />the year ended December 31, 2023 were $541,104. The City’s contributions were equal to the required contributions as <br />set by state statute. <br /> <br /> <br />D. PENSION COSTS <br /> <br />1. GERF Pension Costs <br /> <br />At December 31, 2023, the City reported a liability of $2,823,903 for its proportionate share of GERF’s net pension <br />liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 <br />million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the <br />definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability <br />associated with the City totaled $77,857. <br /> <br />The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net <br />pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension <br />liability was based on the City’s contributions received by PERA during the measurement period for employer payroll <br />paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions received from all of <br />PERA’s participating employers. The City’s proportionate share was 0.0505% at the end of the measurement period and <br />0.0428% for the beginning of the period. <br /> <br />City's proportionate share of the net pension liability $2,823,903 <br />State of Minnesota’s proportionate share of the net <br /> pension liability associated with the City 77,857 <br />Total $2,901,760 <br /> <br />For the year ended December 31, 2023, the City recognized pension expense of $590,437 for its proportionate share of <br />the GERF’s pension expense. In addition, the City recognized an additional $350 as pension expense (and grant <br />revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. <br /> <br />64 <br />71